The board of directors of Tredegar Corporation (NYSE:TG) declared a quarterly dividend of seven cents ($.07) per share on the company’s common stock, representing a four cent ($.04) increase in the dividend on an annualized basis. The dividend is payable on April 1, 2013 to shareholders of record at the close of business on March 15, 2013. Nancy M. Taylor, Tredegar’s president and chief executive officer, said, “We are pleased to increase our annual dividend rate by 16.7%, which represents an important element for providing a return to our shareholders. This is our third dividend increase in three calendar years.” Based in Richmond, Virginia, Tredegar Corporation is primarily a global manufacturer of plastic films and aluminum extrusions. With approximately 2,700 employees, the company operates manufacturing facilities in North America, South America, Europe and Asia. Additional information regarding Tredegar Corporation is available at www.tredegar.com.
Shareholders of Tredegar Corp. looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the June covered call at the $25 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 8.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away.